Future of rent: Success for long-term rental tender in Ramat Gan

Ramat Gan's Azar Gardens will soon be home to 195 long-term rental apartments, thanks to a successful tender carried out by the government housing company for such rentals, the Ministry of Construction and Housing, and the Israel Land Authority. This marks the first tender for rental apartments since the start of the recent conflict on October 7, and the second tender for long-term rental in Azar Gardens.

Eight companies submitted proposals for the construction of this long-term rental project, with Prashkovsky emerging as the winner. Their bid of approximately NIS 84 million ($23.3 m.), including development expenses and VAT, translates to around NIS 430,000 ($119,000) per housing unit. This represents a significant increase of almost 25% in land prices compared to the previous tender in Azar Gardens, which closed on September 23 and was won by Shebiru and Raisdor.

The results of the tender, coupled with the number of bidders, indicate a renewed interest and attractiveness in the long-term rental market among entrepreneurs. The auction includes 195 units spread across a 0.5-hectare plot, where two buildings - one 31 stories tall and the other 9 stories tall - will be constructed, offering a diverse mix of apartments.

According to the terms of the auction, half of the apartments will be designated for reduced-rent housing for eligible individuals, while the remaining half will be rented out on the free market at market prices. Additionally, the project will feature 770 square meters of commercial space.

Situated in a central location in Ramat Gan, near Bar Ilan University and Sheba Hospital, the "Gani Azar Tamal/1038" project is conveniently located close to Route 461 and lies between Route 4 and Kfar Azar. The new neighborhood will be situated north of the purple line of the planned light rail and will consist of approximately 1,920 units, including 393 small housing units and 250 sheltered housing units. A significant portion of the area will be allocated to public buildings, employment opportunities, and commerce.

Inbal David, CEO of Apartment for Rent, congratulated to the winning company, the Ramat Gan municipality, and future tenants who will enjoy high-quality residences in a sought-after location, providing them with certainty, stability, and an opportunity to plan their future. David also pledged to continue increasing the supply of long-term rental units, offering an attractive residential option within reach for the renting public in Israel.

Yitzhak Goldknopf, Minister of Construction and Housing, emphasized the government's commitment to providing a wide range of housing solutions to ensure that every household can find an affordable and high-quality living arrangement.

He also highlighted the promotion of the institutional rental market as a means to increase the housing stock and the importance of implementing appropriate regulations for the rental market as a whole. Despite the ongoing emergency routine, Goldknopf commended the continuation of this important work, as it addresses the fundamental need for shelter.

Yaakov Quint, director of the Israel Land Authority, welcomed the positive news of the tender, stating that it demonstrates the feasibility of similar projects. Quint assured that the Israel Land Authority will continue to market land for rental housing and explore measures that enhance the viability of additional tenders nationwide.